Press Release
Nylex withholds product putting 180 jobs at risk – NUW calls on ACCC to investigate
Monday July 10, 2006
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NUW Victorian State Secretary Antony Thow
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Nearly 200 factory workers in Frankston were stood down indefinitely today (Monday July 10, 2006), after Nylex continued to refuse to release vinyl product to the FRN factory.
FRN was owned by Nylex for more than 30 years, before being sold to Huon Corporation along with Empire Rubber in Bendigo and Mills Elastomers, late last year.
On June 30, Huon Corporation was placed in voluntary administration.
FRN has a contract to make door trims for the current model Holden Commodore for the next 18 months; however, Nylex is withholding supply of the core vinyl component, until an unsecured $1.4 million debt is paid.
Alternatively, Nylex has told administrators they can purchase further product for three times the current market rate.
Neither option is possible at this stage.
NUW State Secretary Antony Thow was appalled at Nylex’s behaviour and called on the company to release the product immediately, to try to secure the 180 jobs at the Frankston site.
“Some of our members worked for Nylex for more than 30 years, and this is how the company repays their loyalty – putting their jobs, their mortgages and their families’ well-being in jeopardy,” Thow said.
“Nylex is owed around $1.4 million, our members are owed in the vicinity of $30 million and we question why Nylex should effectively hold its former employees to ransom to ensure its debt is paid first.
“The only way to secure our members’ short to medium-term futures, and provide an avenue for Nylex to have its debt repaid is to keep the factory open.
“Nylex is simply trying to jump the list of creditors unfairly, and wash their hands of their responsibilities to their former employees. They should be ashamed and should release the vinyl immediately so our members can get back to work.”
Thow said the particular vinyl – 3.2mm Anthracite vinyl – was no longer made in Australia, with Nylex having enough supply to fulfill the General Motors order, sitting in its warehouse in Mentone.
Thow said even more deplorable was the fact Holden may have attempted to source the product from France, however he had been told Nylex had placed a similar order, effectively blocking any possible supply of the product to Frankston.
“Nylex has effectively told the administrators to pay the $1.4 million, or they can buy any further stock at three times the current market value, neither of which is possible under the current circumstances,” Thow said.
“And now they’ve seemingly blocked General Motors from sourcing the product overseas to try to fill the orders.
“We call on Graeme Samuel and the ACCC to investigate these very serious allegations urgently to determine if Nylex has misused its market power.
“No matter what, these 180 workers deserve a lot better than the treatment they are receiving right now.
“They all turned up to work this morning, prepared to work with the administrators to fight for their jobs. Some were even prepared to work for free to try to secure their futures.
“Instead they were turned away because their heartless former employer decided it deserved preferential treatment to these hard-working employees.
“Nylex has the chance to put this right and we call on them to do so immediately.”
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Last modified 2006-07-10 05:26 PM
